J&K Minerals Limited invites
Expression of Interest (EOI) from parties, having sound expertise in
exploration, mine planning and mining of Gem Stones, for undertaking
exploration and exploitation of world famous Gem Stone, Sapphire in
Paddar area of District Doda in J&K, through joint venture (JV).

Based on the Information to be
received as above, a shortlist of parties will be prepared who will
be issued the Request for Proposal (RFP) to submit their Technical
and Financial

Proposals for the proposed Joint Venture. Copies of the Report on
Geological and other relevant data and the Feasibility study conducted
by JKML will be made available along with the RFP to the short listed
parties for submission of their proposals.

The EOI, be
addressed to Managing Director, J&K Minerals Limited, Old Secretariat,
Jammu - 180001 (J&K) in double sealed cover/(s) within 45 days from
publication of this notice.

Background: Jammu and
Kashmir is famous for its Sapphire Mines which are situated in the highly
rugged terrain of great Himalayan Range. The accessibility to the area is
through fair weather road as well as bridle path. From Kishtwar to Atholi
a distance of 60 Kms is covered by a fair weather road and from Atholi to
Sumcham a distance of 40 Kms is through the bridle path only. J&K Minerals
Ltd. (a J&K Govt. Undertaking) is holding lease for exploration / exploitation
of Sapphire Gem Stone in the area. The Company is presently involved in
exploitation of minerals like Lime Stone, Gypsum, Coal and is running a
Cement Plant as well as two Precast Concrete Factories. It has played pioneering
role in establishing Mineral based industry in the State of J&K (India).

In absence of evaluation of deposits in the
area, and due to limited infrastructure at the mine coupled with financial
constraints very little mining has been done by the Corporation by manual
means through underground working. The mine has the possibility of Open
Cast working after utilization of heavy mechanized machinery. With a view
to ensure commercial exploitation, on scientific lines by following provisions
of relevant statutes, the exploration of the area on scientific lines for
estimation of reserves is essential.

With a view to develop these mines on commercial
lines JKML has decided to invite "Expression of Interest" from
reputed and experienced parties for short-listing of potential partners.
The exploration and exploitation of Sapphire mine is proposed to be taken
up through JV.

Geology: The mines which
are situated in highly rugged terrain of Himalayan Range remains almost
snow bound. Perpetual snow covered glistering vitreous mountains, rising
as high as more than 5500 Mts. deep gorge's and precipitous defiles, cirques
and amphitheaters, U-shaped glacial valley and hanging valleys all combine
in the central Himalayan topography. The glacial carved out valleys represent
a steep like longitudinal profile. Alluvial fans are seen throughout the
paddar area. The weathering conditions smooth their way to gentler slopes
and torrential stream gets away along it; a flat ground comes into existence.
These flat grounds have been inhabited by the people from the villages like
Garh and Masu. Besides, these river terraces are by no means uncommon in
the paddar area. The town of Atholi and village of Kijai are situated on
such terraces. There is the considerable moisture in the area because of
the enormous heights. This area remains considerably under the clouds when
monsoon attacks the plains. Average temperature during the working season
of July to September remains around 5°C to 10°C during the day and
almost minus 1-2°C during night. However, in the mine, the temperature
is always minus 2-10°C.

The whole paddar area has undergone Regional
metamorphism as one moves from Kishtwar to the Sapphire mine area. The original
Argillaceous rocks subjected to Metamorphism changed the chlorite under
Epidote - Amphibolite Facies as under:

Mg3Si2O5
(OH)4

+

KAlSi3O5

=

KMgAISi3O10
(OH)2

+

2Si2O

+

H2O

(Antigorite)

(Orthoclase)

(Biotite)

(Quartz)

(Water)

Properties of Sapphire:
Sapphire is a Greek word meaning blue. Kashmir Sapphire is known as king
of sapphires. The brilliance exhibited by it is of a rare quality and fetches
the highest possible price per carat. Its deep blue colour with cornflower
tinge is its specific colour characteristic. The velvety touch called as
mercurial colour resembles to the neck of a peacock; which provides the
only discernible characteristics of the stone from rest of the world. Inclusion
of rutile needles result in silky sheen. Sapphire exists in the Rhombohedral
form, the prominent face read 2243 /\ 2423 = 51° 58' between two prismatic
faces. Crystal faces show striation and etch-mark. The majority of the crystals
ranging from 0.8 inches to 1.5 inches in length are very much transparent,
but, the crystals, which are beyond two inch in length, are mostly opaque
and translucent. The hardness of the sapphire is nine as per the Moh's scale
of hardness. The sapphire crystals are usually embedded in the fine matrix
of kaolin transversing the pegmatite vein. The Kashmir Sapphire under microscope
shows that they are uniaxial in nature. They depict negative characters.
A variety having satellite opalescence when viewed in the direction of vertical
axis of the crystal is the asteriated Sapphire. Sapphire is strongly diachronic.
Streak is white, Sp. Gr. 3.93 to 4, fracture uneven, Ref. Index 1.765, Double
Ref. Index 0.08, Disperssion 0.018, Pleochroism is blue. Absorption spectrum
Blues from 4710, with Flourscance.

Mining Activity: J&K
Minerals Limited has done mining activity in the area on a very small scale
and the year wise details of Sapphire Corundum collected are as under:

Year

Production of Corundum
Grams

1963-64

50,000

1964-65

2,00,000

1965-66

2,24,000

1966-67

1,85,000

1967-68

1,83,672

1968-69

1,44,580

1969-70

1,40,415

1970-71

2,14,500

1971-72

--

1972-73

--

1973-74

84,845

1974-75

--

1975-76

--

1976-77

--

1998-99

2,696

1999-2000

1,807

2000-2001

3,460

2001-2002

1,340

2002-2003

1,297.5

2003-2004

3,294

2004-2005

3,215.50

The Gemstones are generally retrieved from
screening of debris. This screened debris is subjected to splash of water
which reflects upon wet gemstones getting picked up and are brought before
Gemmologist for identification purpose. After visual identification by magnifiers,
the corundum is segregated from sapphire. This segregated quality of sapphire
is subjected to removal of Kaoline and other matrix. Concentrated Hydrochloric
acid or Nitric acid is applied, as the case may be, in small proportions
i.e. 100 gms. to 500 gms. And crystals are dipped in acid wash. After stirring
for an hour the matrix gets dissolved and gemstone are retrieved. This is
followed by passing the said stone through various sieves so that the size
of the gemstone is established. Around 4 to 5 categories are made for evaluation
and each and every piece in the sorted packet is properly weighed in carats
for auction purpose.

Since we utilize 1 Kg to 2 Kg in a season of
Hydrochloric Acid, as such, the waste of the said acid is properly disposed
in a small pit, which is mostly covered on completion of job. Around 100CubicM
of water is required for processing of debris which is stored in a pond
near the mines and this water suffices for the entire period of operation
of the expedition. There is thus no problem involved in disposing of waste
water and extent of recycling.

Generation of Hydroelectricity:
In view of numerous water falls in the area, it is possible to generate
electricity from 5KW to 500 KW. In this connection an Alternator and Voltage
Stabilizers is to be installed of required specification on Vertical Shaft
Type. The Water from the fall is trapped and routed through the chute which
falls on the flat blades.

Iron turbine with ball bearing and steel lining
into wooden flume is installed for smooth passage of water which generates
hydroelectric power on mini scale sufficient for the project requirements.

Satellite Imagery: J&K
Minerals Ltd. with the active help from National Remote Sensing Agency,
Hyderabad got drawn one satellite Imagery of Padder Sapphire Mines in 2001
on IRS IC/ID Satellite, Sensor LISS III, path 94 ROW 47, TS 52 Co7 Geocoded
data on Segment of 28 Kms, Compatible to Q01 Toposheet on latitude from
33° 20' and longitude of 76° 15'to 33° 20' and longitude of
76° 15' to 76° 25'. This plan shows in detail the geotechtonics
of the area, the movement of thrust fault zones, folding pattern etc. This
imagery is the basis for undertaking tonnel interference in the area for
locating probable Sapphire resources. This imagery provides the total picture
of water regime in the area with glaciers of the sorts seen. River Chenab
which takes its existence from here is also clearly seen piercing through
the area No: 1 denotes Sapphire Mine area and rest are other locations with
clear demarcation of linear and edges (Interanature Valley).

The pattern of mineralization structure and
tectonics can be inferred from the study of this imagery. The imagery has
provided ample information of the area with reference to its height to various
mountain reaches in the area. This imagery has also highlighted the ridge
of Zanaskar Range forming part of the pattern of Greater Himalayas. The
high resolution multispectral satellite data forms an ideal base for mapping
factual structural details and for preparing the interpreted structural
map. Bedding terraces, trend lines, fracture, faults folds and intrusive
bodies are clearly seen in this imagery, playing field anticline is clear.

The fundamental aim of the remote sensing mapping
was in the study of segmentation of Geological & Geomorphical mapping
in the depicting structure and tectonic pattern, lethological varieties
and Geological Evolution higher spatial resolution of PAN & multispectral
resolution of less III has given two mineral details, in the preperation
of lithological structure, Geomophological & Geo Environmental. This
information combined with Geophysical and other date had proved useful in
tangetting areas of Mineral Exploration especially Sapphire Gemstone.

Drainage & Vegetation:
The presence of snow in the mines gives rise to small drains but as
and when the snow cover depletes the drains become dry. Since the area is
within the snow line and above the forest cover only small herbs and shrubs
are seen in the fauna and flora. The flora of the area is represented by
different kinds of mild flowers with small grass that adds to the scientific
beauty of the area.

Relief and Elevation: The
relief of the area has been shaped by the action of ice and glaciers. Te
north east limb of anticline has been eroded at many places to pseudo ridge
like relief. Sometimes these ridges turn to cliffs which is exposed to near
mines on the north east side. Elevation of the mine area starts from 4200mtrs.
and covers more than 5600mtrs.

Submission of Expression
of Interest: In order to submit the response in a structured manner
you are requested to kindly fill the form
and furnish us with the requisite data so as to enable us to proceed further.
You are required to send the form to the Managing Director on the following
address: